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Agricultural Exports and Economic Growth in Developing Countries: A Panel Cointegration Approach

Lookup NU author(s): Dr Philip Dawson

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Abstract

This paper quantifies the contribution of agricultural exports to economic growth in developing countries. We estimate the relationship between GDP and agricultural and non-agricultural exports for 42 countries using panel cointegration methods. Results show that a long-run relationship exists, the agricultural export elasticity of GDP is 0.07 whereas that of non-agricultural exports is 0.13, and total exports Granger-cause GDP, which supports the export-led growth hypothesis. Structural differences exist in the relationship by broad income group. Balanced export-promotion polices are implied for the poorest countries, but, for those with higher incomes, higher economic growth is achieved from non-agricultural exports.

Publication metadata

Author(s): Sanjuán-López AI, Dawson PJ

Publication type: Article

Publication status: Published

Journal: Journal of Agricultural Economics

Year: 2010

Volume: 61

Issue: 3

Pages: 565-583

Print publication date: 01/09/2010

ISSN (print): 0021-857X

ISSN (electronic): 1477-9552

Publisher: Wiley-Blackwell

URL: http://dx.doi.org/10.1111/j.1477-9552.2010.00257.x

DOI: 10.1111/j.1477-9552.2010.00257.x

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